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Speakers’ curriculum vitae

Education : • Doctor of Laws and Graduate in Notarial Sciences, University of Leuven (Belgium)• Financial Management Program, VLEKHO, Brussels (Belgium)• Advanced Management Program, INSEAD, Fontainebleau (France)

Previous positions : • 1971 Kredietbank, Brussels – Legal and Litigation Departments • 1979 Several managerial functions in regional credit departments and the corporate network• 1989 Regional Manager, responsible for the corporate segment• 1994 Senior General Manager, Processing & Automation Directorate• 1996 Managing Director, Member of the Executive Committee• 1998 KBC – Managing Director, Member of the Executive Committee

Present position : • 2006 Member of the Executive Committee & CEO, Central and Eastern Europe & Russia

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The scale of KBC’s network in CEE-4 is being significantly expanded (new branches, more tied agents)

Moreover, KBC is exporting its unique distribution model, including co-operation of bank and insurance channels and decentralised investment advisory skills

KBC is now better positioned to snatch opportunities for cross-selling and promoting value-added products

On top of this, a program is being carried out to enhance the performance-driven culture throughout the organisation in order to further accelerate business performance

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Introduction: KBC in Central and Eastern Europe and Russia

Total Risk-Weighted Assets: 29bn euros

Number of Employees: 30 000

Number of Customers: 7 million

Cost / Income Ratio (banking): 58%

Net profit 9M07: 444m euros (+20% y/y)

Return On Allocated Capital: 28%*

All figures relate to 9M 2007, excluding exceptional items* return on allocated capital stood at 25% incl. first-time consolidation adjustments for Absolut Bank (28% excl. these adjustments)

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Survey results show that, in forthcoming years, new client acquisition and maintenance of the actual customer base will be based predominantly on traditional sales channels in the retail market (branches, agents etc.)

The experience of the last few years show a strong correlation between retail market share and branch density

We therefore upgrade our networks of bank branches and insurance agents (using the bancassurance model)

We focus on affluent clients by providing value-added Advisory Services, as part of our product offering – such as Investment Advisory Services

Pursuing distribution excellence: expanding the branch networks

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Bank Branch-Opening Program 2006-2009 in CEE-4

Branch-Opening Program in Visegrad countries (CEE-4) is on track:In 2006-2007, 180 new branches were opened190 to be opened in 2008 and 2009

Expansion of the branch networks will enable us to reach more customers and service existing customers better

No. of KBC branches in CEE-4

0200400600800

100012001400

2006 2007actual

2008planned

2009planned

SKHUCZPL

No. of inhabitants per KBC branch

020.00040.00060.00080.000

100.000120.000

2006 2007actual

2008planned

2009planned

PLCZHUSK

843972

11631072

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Bank Branch-Opening Program -Achievements

Focus on new client acquisition

Breakeven after 3 years, on average

Recruitment of new staff is a challenging factor

Initiallyplanned

New planning Achieved Total no. of

branches 2007CAPEX

EUR

PL 90 120 100 450 28CZ 0 25 15 223 4HU 150 165 50 203 48SK 20 60 15 96

TOTAL 260 370 180 972 899

The CAPEX figures refer to the 2007-2009 period (except for Poland: 2006-2008). CAPEX is expected to be 25m euros in both in 2008 and 2009

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Bank Branch-Opening Program –example (Poland)

100 new branches opened

Further locations identified for potential new KB branches

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Further enhancing the Bancassuranceconcept

“Integrated distribution” principle, applied for bank and insurance channels:

Unified management

Centralised marketing

Integrated customer databases

Remuneration schemes

“Micro-Markets” approach:

Tied Agents: exclusive, self-employed agents linked to the local bank branches

Local insurance agents and local bank outlets work together (“act as one company”)

Bank branches sell standardised insurance products, and refer more complicated products to the agents

Agents refer customers to the bank branches and deal with after-sales service

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Further enhancing the Bancassuranceconcept (2)

Further enhancing the bancassurance concept by:Completing the development of shared customer databasesExpanding insurance agent networks Upgrading of the agent networks: “Tied Agents project” focusing on specialisation, sales support, training, review of incentive system, segmentation etc.

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No. of active Tied Agents

0

1000

2000

3000

4000

5000

2007 2008 2009

Sk

Hu

Cz

Pl

The number of (active) insurance agents will be expanded from 3 190 to 4 000 by 2009 (+25%)

Recruitment of new high-quality agents is main challenge

Increasing the number of tiedinsurance agents - illustration

Micro-market

Agent Bank

3 1904 000

Number of inhabitants per KBC Tied Agents

0

50.000

100.000

2007 2008 2009

Sk

Hu

Cz

Pl

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Using secondary channels to reach additional market segments

Czech Republic:Postal Bank: 3 400 outlets and 31 financial centres, another 30 financial centres to be opened by 2010; special attention on Consumer Finance – consumer loans and cardsHypotecni Banka (monoline mortgage lender): 30 sales points

CMSS: monoline “building savings” company providing savings accounts and subsequently, housing loans through 2 400 exclusiveagents

Poland:Zagiel Consumer Finance: 220 sales offices and 35 000 retailers Ongoing project to increase number of Sales Points (average initial investment: 10 000 EUR, break-even after 11 months)

Hungary:Sale of retail insurance via brokersRetail banking products via 2 200 non-exclusive banking agents

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Illustration: new consumer finance sales points in Poland (Kredyt Punkt)

220 loan shops opened (project launched in March 2006)Owned and run by Franchisees/ AgentsFairly well located – pedestrian traffic, ground floor, big windowUniform appearance, small, simpleFirst roll-out effort quite successful, now extensive marketing and sales support efforts to increase traffic

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Reinforce direct distribution channels

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Pursuing distribution excellence: the ‘advisory model’

Differentiate ourselves from peers by focusing on Customer Relationship Management (CRM) and Advisory Services instead of solely selling products

InvestmentsCreditsSME

Structured planning of customer approach (e.g., meetings) based on an automated CRM system

Personal advice based on the analysis of customer needsAssessment of customer risk profileStructuring and diversification of the products portfolio (e.g., investments)Finding the solution that is best for the client

Advisors: specialised staff with strong professional skills, supported by adequate IT tools; continued skills upgrade ensured by comprehensive training programs

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Implementing the advisory model in CEE-4

The implementation of the KBC advisory model resulted in the increase of assetmanagement market share (to levels clearly above banking market share)

in most markets

26%27%28%

11%

18%17%

8%10%

12%

4% 4%3%

Czech R. Hungary Slovakia Poland

sep/05sep/06sep/07

KBC market share in Mutual Funds in the CEE countries Market share, Banking

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Transactions longer than 5 minutesPlace for up to 3 customer advisorsDesigned to serve customers with discretion in a comfortable atmosphere

24 hours access1 ATM (place for 2nd one available)Statement printer space

Meeter-greeter roleTransactions not longer than 3 to 5 minutesCash transactions through time-lock protected devices (no glass boxes)

With a clear view on the Branch Allows for discrete (sales) conversations with customersAllows for discrete big-cash transactionsPHYSICAL

LAYOUT

SELF SERVICE ZONE

ADVISORY ZONE

FAST SERVICE ZONE

BRANCH MANAGER OFFICEFacilitiesFacilities

Customer focusCustomer focus

Implementing the advisory model via the new branch setup

More than 50% office space is reserved for Advisory Services

At least 3 customer advisors (Investments, Credits, SMEs)

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New interior design to support the advisory model : example (Hungary)

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Performance-driven culture: transformation towards excellence

StrategicAlignment

Accountability

Motivation

Innovativeness

After the programBefore the program

Organisational health outcomes

+25%

+15%

+12%

+50%

A transformation program to improve performance culture:

Focus on innovation and identification of market opportunities and business initiatives

Clear commitments about goals to be reached at all organisational levels

As a result, “organisational health”has improved across all indicators

KBC launched its ‘Blue Effect’ performance culture program in the Czech Republic in 2004

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Profit in CR has outgrown the market

Enhanced performance culture contributed to:

Better financial results

Enhanced position amongst peers

Based on experiences in CR, the program will be launched in the other CEE-R countries, starting

with Hungary and Slovakia

* ČSOB data comprise its Slovak business

PAT CAGR 2003 - 06

ROE2006

Market: 16%

-10%

5%

20%

25%

-5% 5% 15% 25% 35%

10%

15%

Ovals representing CSOB and its peers

Source: MCKinsey Banks Data

ČSOB: The Best BankCzech Republic 2007

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The scale of KBC’s network in CEE-4 is being significantly expanded (new branches, more tied agents)

Moreover, KBC is exporting its unique distribution model, including co-operation of bank and insurance channels and decentralised investment advisory skills

KBC is now better positioned to snatch opportunities for cross-selling and promoting value-added products

On top of this, a program is being carried out to enhance the performance-driven culture throughout the organisation in order to further accelerate business performance